UPDATE: On June 30, 2023, the Supreme Court issued a decision that blocked the implementation of this program. This debt relief program is not allowed to continue.
In August of 2022, President Biden announced a brand new program designed to help borrowers with the burden of student loan debt. This program would provide eligible student loan borrowers with up to $20,000 in debt cancellation for Pell Grant recipients, and up to $10,000 in cancellation for non-Pell Grant recipients.
Who would have qualified?
If you filed federal taxes, your income requirements are based on your adjusted gross income (AGI), which tends to be lower than your total income. Your AGI can be found on line 11 of the IRS Form 1040. To qualify, you should meet the following income limit:
- Individuals who made less than $125,000 in 2021 or 2020
- Families that made less than $250,000 in 2021 or 2020
Eligibility breakdown:
| Cancellation Amount | Loan Type | Income Eligibility |
| Up to $20,000 | Pell Grant | Individual annual income less than $125,000 |
| Married couples or Head of household annual income less than $250,000 | ||
| Up to $10,000 | All Non Pell Grant Loans | Individual annual income less than $125,000 |
| Married couples or Head of household annual income less than $250,000 |
What’s the status of this program?
The Supreme Court released a decision on June 30, 2023, that blocked the implementation of this program. The decision means that this program will not continue.
IMPORTANT: While the One-Time Debt Relief program is blocked, this does not affect PSLF, and that program is still available to borrowers.